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1. Underperformance in China drags down IHG in third quarter
Weakness in Greater China was a defining issue for IHG Hotels & Resorts during the third quarter of 2024, with revenue per available room for the region down 10.3%, HNN's Terence Baker reports. IHG CEO Elie Maalouf said he expects a Chinese rebound sooner rather than later.
“China has been bundling along for two or three quarters, but the comps are getting easier. It could easily continue that same 2019 trend, but our belief as we said at [the half-year results earnings call] is bottoming out,” Maalouf said.
He noted most of the rest of the world has been strong with Europe, Middle East, Asia — not including Greater China — and Africa seeing a 4.9% RevPAR increase.
2. Spirit Airlines faces possible bankruptcy
While Spirit Airlines was up 40% after striking a last-minute deal to extend a deadline to restructure $1.1 billion in debt, the troubled budget airline still is facing down the possibility of bankruptcy, Quartz reports.
Spirit is now maxed out on its $300 million revolving credit facility first set up in March 2020. That debt is set to mature in September 2026. Executives say they currently have $1 billion in liquidity.
"The carrier’s latest financial report showed its 11th consecutive quarterly loss and revealed its struggle to make headway in a turnaround while having to increasingly compete with larger so-called 'legacy' players for low-fare customers," the news outlet reports. "In recent months, Spirit has deferred airplane deliveries, furloughed hundreds of pilots, and offered 'voluntary unpaid leaves of absence' to flight attendants as part of an initiative to save $100 million this year."
3. Disney teases executive shakeup
Former Morgan Stanley CEO James Gorman is slated to chairman of Disney's board in January with the promise that Disney CEO Bob Iger's replacement will be named in 2026, the Wall Street Journal reports.
"Gorman and Iger speak regularly," the newspaper repots. "The former Morgan Stanley CEO is focused on finding the right candidate to help Disney move past its reliance on its larger-than-life CEO and ensure it has a strong pipeline of leaders to help it succeed long term, people familiar with the matter said. The board has hired Heidrick & Struggles to lead the search for external candidates, some of the people said."
4. UK union's hotel investment faces investigation
The BBC reports the United Kingdom's Serious Fraud Office is investigating Unite the Union, one of the country's top trade unions, for its investment in a 170-room Aloft Birmingham Eastside hotel and a 1,000-person conference center.
The news outlet reports the union spent a total of £112 million on the project but the building is now valued at just £29 million.
Previous general secretary of the union had previously championed the investment, but current union officials say they were "misled as to the true value of the project," according to documents acquired by the BBC.
5. Outrigger rebrands Waikiki resort
Outrigger Hospitality Group has announced the former Outrigger Ohana East has reopened as the Outrigger Waikīkī Paradise Hotel.
“As our second craft property, Outrigger Waikīkī Paradise Hotel blends Hawaii’s vibrant cultural heritage with modern energy through local art and artisans,” Sean Dee, Outrigger's executive vice president and chief commercial officer, said in a news release. “Our thoughtful design honors the deep history of this place, also paying tribute to Queen Emma — whose legacy of compassion and leadership continues to inspire and uplift Native Hawaiians and the broader community alike.”